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April 10, 2024
Question

Selling all shares of S-Corp

  • April 10, 2024
  • 1 reply
  • 0 views

I own 16% of an S Corp. This is a passive activity.
I currently have a basis of $90,000 and losses of $50,000 that were accrued and carried forward the last few years. I have not been able to take these losses due to the passive activity loss limitations.
If I sell my shares for $5,000, how much of a loss can I take if any?

1 reply

April 10, 2024

Based on the information you provided you would a capital loss of $85,000 and you would be able to realize the losses of $50,000.   

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